Schools Eye Novel Finance Scheme

The Idea Is To Borrow Lottery Money That's Eventually Headed For Other Districts.

November 11, 2001|By Pamela Mercer, Sentinel Staff Writer

Osceola County school officials are considering a plan that would enable them to borrow about $50 million in state lottery proceeds intended for two other districts. The money would be used to build schools here.

The plan, still in its infancy, would allow Osceola to finance badly needed school-construction projects and ease overcrowding within a relatively short time.

It will also require extensive negotiations on a novel idea, and all sides must come to an agreement by June, when the state will issue more lottery earnings-backed bonds.

The idea originated from an attempt by the Legislature four years ago to ease crowding in Florida's schools. Lawmakers threw districts a $2.7 billion life raft in funds for school construction. The state paid for its aid package by borrowing against future proceeds from the Florida Lottery.

Financially strapped, fast-growing counties such as Osceola received their share in one lump sum. Osceola spent its $41 million in less than two years, building part of Narcoossee Community School, Discovery Intermediate and a portion of the ninth-grade center at Gateway High.

In contrast, eight districts, including Collier and Indian River, chose to receive their share in annual installments over 20 years, because they had no immediate need for cash. Both are wealthy districts compared with Osceola, which raises less than $6,000 per new student from its share of property taxes. Collier, by comparison, rakes in more than $27,000 with the same tax rate, county figures show.

Officials are unsure what legal or administrative avenue to take to push their plan forward, but they say new legislation will likely be unnecessary.

For now, "this is just a concept. It's at very preliminary stage," said Richard Collins, the district's head of business and fiscal services.

If successful, the plan would constitute an unprecedented money-raising mechanism -- one in which Osceola would essentially act as an agent for the state with proceeds from future Florida Lottery earnings as its financial guarantor.

Politicians in Osceola acknowledge it is a bold concept for a relatively small county with limited power in Tallahassee. However, they point to the plan's usefulness as an economic stimulator. The extra construction would create new jobs and help the local the economy through public spending.

The district has not yet decided where to spend the money, but board members suggested a high school near the Harmony development east of St. Cloud could be built in two years rather than five, thus easing crowding in Gateway and Poinciana high schools. If the district ends up buying the Tupperware Convention Center, the $50 million could help to convert it into a school, board members said.

School Superintendent Blaine Muse called the plan a "win-win" situation. He said it would entail no extra expense for anyone and would help Osceola unlock itself from its perpetual cycle of growing needs and shrinking margins.

Much will depend on whether Osceola can offer Collier and Indian River counties sufficient guarantees that it will be as reliable as the state, Osceola officials said.

The School Board has drafted tentative memorandums of understanding it plans to share with both districts in the coming days. Negotiations between both sides have not yet begun. School officials in Collier and Indian River were not available for comment Friday.

"If the money's still there, why can't we borrow it and pay back the other districts?" said School Board member Judith Robertson.

"It's not being put to good use right now. If the other districts had a need, it could be bonded for them now.''